Bernstein raises Ryanair stock target on strong fare trends

Published 28/01/2025, 10:38 pm
© Reuters.

Analysts at Bernstein anticipate that Ryanair (NASDAQ:RYAAY) will deliver annual cash returns of €2 billion. Their projections stand 19% higher than the street consensus for fiscal year 2026, suggesting that the cuts made by consensus last summer have not been fully reversed. According to Irving, the improving fare trends and the prospect of high cash returns bolster the investment case for Ryanair. The airline is positioned as a top pick within the airline sector, with an Outperform rating and a revised price target of €23.50. InvestingPro analysis confirms the company's strong financial position, holding more cash than debt on its balance sheet and maintaining an impressive Financial Health Score of 3.42, rated as "GREAT." InvestingPro analysis confirms the company's strong financial position, holding more cash than debt on its balance sheet and maintaining an impressive Financial Health Score of 3.42, rated as "GREAT."

Analysts at Bernstein anticipate that Ryanair will deliver annual cash returns of €2 billion. Their projections stand 19% higher than the street consensus for fiscal year 2026, suggesting that the cuts made by consensus last summer have not been fully reversed. According to Irving, the improving fare trends and the prospect of high cash returns bolster the investment case for Ryanair. The airline is positioned as a top pick within the airline sector, with an Outperform rating and a revised price target of €23.50. InvestingPro analysis confirms the company's strong financial position, holding more cash than debt on its balance sheet and maintaining an impressive Financial Health Score of 3.42, rated as "GREAT."

Analysts at Bernstein anticipate that Ryanair will deliver annual cash returns of €2 billion. Their projections stand 19% higher than the street consensus for fiscal year 2026, suggesting that the cuts made by consensus last summer have not been fully reversed. According to Irving, the improving fare trends and the prospect of high cash returns bolster the investment case for Ryanair. The airline is positioned as a top pick within the airline sector, with an Outperform rating and a revised price target of €23.50.

In other recent news, Ryanair has seen notable developments in its financial performance and operational outlook. The company recently updated its passenger outlook for fiscal year 2025 to just under 200 million, a slight revision from the previously forecasted range of 198-199 million. For fiscal year 2026, the forecast was set at 206 million passengers, marking a 3% year-over-year increase. The airline's operating margin for the fiscal third quarter of 2025 improved to +1%, up from -1% in the comparable period of the prior year. Furthermore, Ryanair's full-year net income guidance for FY25 is now projected to be between €1.55 billion and €1.61 billion, an increase above the consensus by 2-6%.

Ryanair's shares were upgraded from Neutral to Buy by UBS, citing an improved outlook for 2026. Simultaneously, Morgan Stanley (NYSE:MS) raised its price target on Ryanair shares to €22.20 from €21.40, maintaining an Overweight rating on the stock. This was despite a forecasted reduction in passenger numbers due to slower aircraft deliveries from Boeing (NYSE:BA). The firm revised their FY26 earnings per share (EPS) estimate upwards by 6%.

In other operational developments, Ryanair expanded its fleet with the addition of Boeing 737 Gamechanger aircraft, which numbered 172 operational by the end of October. The company opened five new bases and introduced 200 new routes, indicating a proactive approach to growing its operations. These are the recent developments that investors should consider when looking at Ryanair's future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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